Question 1

The difference between projects that fail and those that are ultimately successful has to do with:

Accepted Answer

A)  The plans that have been made to deal with problems as they arise. 
B)  The fact that a successful project doesn't encounter problems. 
C)  Whether the project is for an internal or external customer. 
D)  Whether the problem is time- or budget-related. 
A)  The plans that have been made to deal with problems as they arise. 
B)  The fact that a successful project doesn't encounter problems. 
C)  Whether the project is for an internal or external customer. 
D)  Whether the problem is time- or budget-related.

Question 2

The mouse executive board meeting was drawing to a conclusion; the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

Accepted Answer

A)  Commercial risk. 
B)  Execution risk. 
C)  Financial risk. 
D)  Technical risk. 
A)  Commercial risk. 
B)  Execution risk. 
C)  Financial risk. 
D)  Technical risk.

Question 3

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project? $$\begin{array} { | l | l | l | l | } 
\hline \text { Maturity } & 0.7 & \text { Cost } & 0.4 \
\hline \text { Complexity } & 0.6 & \text { Schedule } & 0.6 \
\hline \text { Dependency } & 0.8 & \text { Reliability } & 0.8 \
\hline & & \text { Performance } & 0.9 \
\hline
\end{array}$$

Accepted Answer

A)  Less than or equal to 0.7 
B)  Greater than 0.7 but less than or equal to 0.8 
C)  Greater than 0.8 but less than or equal to 0.9 
D)  Greater than 0.9 
A)  Less than or equal to 0.7 
B)  Greater than 0.7 but less than or equal to 0.8 
C)  Greater than 0.8 but less than or equal to 0.9 
D)  Greater than 0.9

Question 4

The overall project risk factor is known to be 0.6.The probability of dependency failure is twice the probability of complexity failure and four times the probability of maturity failure.The consequence of performance failure is twice the consequence of reliability failure,four times the consequence of schedule failure and eight times the consequence of cost failure.What is the probability of maturity failure? $$\begin{array} { | l | l | l | l | } 
\hline \text { Maturity } & \mathrm { X } & \text { Cost } & \mathrm { Y } \
\hline \text { Complexity } & 2 \mathrm { X } & \text { Schedule } & 2 \mathrm { Y } \
\hline \text { Dependency } & 4 \mathrm { X } & \text { Reliability } & 4 \mathrm { Y } \
\hline & & \text { Performance } & 8 \mathrm { Y } \
\hline
\end{array}$$

Accepted Answer

A)  0.213 
B)  0.197 
C)  0.104 
D)  0.148 
A)  0.213 
B)  0.197 
C)  0.104 
D)  0.148

Question 5

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

Accepted Answer

A)  Risk identification. 
B)  Risk mitigation. 
C)  Analysis of probability and consequences. 
D)  Control and documentation. 
A)  Risk identification. 
B)  Risk mitigation. 
C)  Analysis of probability and consequences. 
D)  Control and documentation.

Question 6

The consequences of failure categories of cost,schedule,reliability,and performance were believed to be 0.25,0.35,0.45,and 0.55.What is the overall consequence of failure?

Accepted Answer

A)  0.2 
B)  0.3 
C)  0.4 
D)  0.5 
A)  0.2 
B)  0.3 
C)  0.4 
D)  0.5

Question 7

Every one of the nine phases of the PRAM methodology has a deliverable.

Accepted Answer

A) True 
 B)False

Question 8

Risk and opportunity:

Accepted Answer

A)  Both increase throughout the project life cycle. 
B)  Vary inversely throughout the project life cycle. 
C)  Both decrease throughout the project life cycle. 
D)  Do not vary throughout the project life cycle. 
A)  Both increase throughout the project life cycle. 
B)  Vary inversely throughout the project life cycle. 
C)  Both decrease throughout the project life cycle. 
D)  Do not vary throughout the project life cycle.

Question 9

Sketch a flow chart for the PRAM methodology for risk management and briefly describe each step.

Accepted Answer

Define - Make sure the project is well-d

Question 10

What are fixed-price contracts and liquidated damages? Which party to the contract bears the burden?

Accepted Answer

Both are financial incentives,although t

Question 11

Fred Knievel took out a substantial life insurance policy before he began his trek across North America in his Volvo.Doing so enabled him to:

Accepted Answer

A)  Accept risk. 
B)  Minimize risk. 
C)  Transfer risk. 
D)  Share risk. 
A)  Accept risk. 
B)  Minimize risk. 
C)  Transfer risk. 
D)  Share risk.

Question 12

With a cost factor of 0.8,a schedule rating of 0.6,a reliability rating of 0.5,and a performance rating of 0.6,the overall consequence of failure was:

Accepted Answer

A)  0.565 for the squidproofing project. 
B)  0.500 for the squidproofing project. 
C)  0.750 for the squidproofing project. 
D)  0.625 for the squidproofing project. 
A)  0.565 for the squidproofing project. 
B)  0.500 for the squidproofing project. 
C)  0.750 for the squidproofing project. 
D)  0.625 for the squidproofing project.

Question 13

The risk is highest in the earliest phase of the project life cycle.

Accepted Answer

A) True 
 B)False

Question 14

To protect his poultry from meteorites,the gentleman farmer made hard hats for each bird and installed a meteor detection system that opened umbrellas throughout the yard if a meteor were detected.The safety of his flock thus assured,the farmer was surprised when he read his latest issue of Risk Management Magazine and discovered that this event was:

Accepted Answer

A)  High in consequence and high in probability. 
B)  Low in consequence and low in probability. 
C)  Low in probability and high in consequence. 
D)  High in probability and low in consequence. 
A)  High in consequence and high in probability. 
B)  Low in consequence and low in probability. 
C)  Low in probability and high in consequence. 
D)  High in probability and low in consequence.

Question 15

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

Accepted Answer

A)  A brainstorming meeting approach to risk factor identification. 
B)  The Delphi method approach to risk factor identification. 
C)  A past history approach to risk factor identification. 
D)  A multiple assessments approach to risk factor identification. 
A)  A brainstorming meeting approach to risk factor identification. 
B)  The Delphi method approach to risk factor identification. 
C)  A past history approach to risk factor identification. 
D)  A multiple assessments approach to risk factor identification.

Question 16

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

Accepted Answer

A) True 
 B)False

Question 17

What does change management accomplish and what are the components of an effective change management program?

Accepted Answer

Change management is a part of a risk mi

Question 18

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Accepted Answer

A) True 
 B)False

Question 19

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

Accepted Answer

A)  Liquidated damages. 
B)  Milestone adjustments. 
C)  Contingency clauses. 
D)  Penalty points. 
A)  Liquidated damages. 
B)  Milestone adjustments. 
C)  Contingency clauses. 
D)  Penalty points.

Question 20

The PostHoc Company specializes in justifying decisions that have already been made.One day they fielded a request to perform a project risk analysis and compute the risk factor for buying an investment property on St.Charles Street in the Big Easy.There was no time (and no need to be perfectly honest)to gather any data regarding the situation; all they had to do was provide an equation and a number that showed the project wasn't too risky for the investor that had already made a decision to proceed.The investor wanted the overall project risk factor to come in at an even 0.5 and also wanted all of the scores for the seven factors that make up this score to have identical values.What is the probability of failure for complexity if these two criteria are met?

Accepted Answer

The risk factor for complexity (as well

The difference between projects that fail and those that are ultimately successful has to do with:

The mouse executive board meeting was drawing to a conclusion; the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project? Maturity 0.7 Cost 0.4 Complexity 0.6 Schedule 0.6 Dependency 0.8 Reliability 0.8 Performance 0.9

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

The consequences of failure categories of cost,schedule,reliability,and performance were believed to be 0.25,0.35,0.45,and 0.55.What is the overall consequence of failure?

Every one of the nine phases of the PRAM methodology has a deliverable.

Risk and opportunity:

Sketch a flow chart for the PRAM methodology for risk management and briefly describe each step.

What are fixed-price contracts and liquidated damages? Which party to the contract bears the burden?

Fred Knievel took out a substantial life insurance policy before he began his trek across North America in his Volvo.Doing so enabled him to:

With a cost factor of 0.8,a schedule rating of 0.6,a reliability rating of 0.5,and a performance rating of 0.6,the overall consequence of failure was:

The risk is highest in the earliest phase of the project life cycle.

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

What does change management accomplish and what are the components of an effective change management program?

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters

Exam 7: Risk Management

The difference between projects that fail and those that are ultimately successful has to do with:

The mouse executive board meeting was drawing to a conclusion; the only way they would be able to detect the presence of the cat was to tie a bell around its tail.Under their risk management identification scheme,this would fall under:

The project team toiled long into the night to develop consequence of failure scores and probability of failure scores as indicated below.What is the overall risk factor for the project? Maturity 0.7 Cost 0.4 Complexity 0.6 Schedule 0.6 Dependency 0.8 Reliability 0.8 Performance 0.9

The construction foreman posted a large sign requiring all work site visitors to don a hard hat and safety glasses.He also purchased copious quantities of both items and made them readily available at the entrance.The foreman is engaged in:

The consequences of failure categories of cost,schedule,reliability,and performance were believed to be 0.25,0.35,0.45,and 0.55.What is the overall consequence of failure?

Every one of the nine phases of the PRAM methodology has a deliverable.

Risk and opportunity:

Sketch a flow chart for the PRAM methodology for risk management and briefly describe each step.

What are fixed-price contracts and liquidated damages? Which party to the contract bears the burden?

Fred Knievel took out a substantial life insurance policy before he began his trek across North America in his Volvo.Doing so enabled him to:

With a cost factor of 0.8,a schedule rating of 0.6,a reliability rating of 0.5,and a performance rating of 0.6,the overall consequence of failure was:

The risk is highest in the earliest phase of the project life cycle.

The terpsichorean was familiar with the risks associated with various moves,the accountant knew financial risks forwards and backwards,while the civil engineer could quantify the risks associated with distributed loads on the temporary stage.Their input was used as part of:

The probability that the investments made to fund the front-end activities will be lost due to project abandonment is financing risk.

What does change management accomplish and what are the components of an effective change management program?

Opportunity emerges from favorable project circumstances and risk from unfavorable events.

Project penalty clauses that initiate at mutually agreed-on points in the project's development and implementation are:

Introduction: Why Project Management?

The Organizational Context: Strategy,Structure,and Culture

Project Selection and Portfolio Management

Leadership and the Project Manager

Scope Management

Project Team Building,Conflict,and Negotiation

Cost Estimation and Budgeting

Project Scheduling: Networks,Duration Estimation,and Critical Path

Project Scheduling: Lagging, Crashing, and Activity Networks

Advanced Topics in Planning and Scheduling: Agile and Critical Chain

Resource Management

Project Evaluation and Control

Project Closeout and Termination

Filters